Introduction
Line organization refers to the simplest and oldest form of organizational structure in which authority flows from top level management to lower level subordinate or vertically. On the other hand, functional organization is more complex than line organization where organizational tasks are divided into smaller functional areas such as finance department, marketing department, IT department etc. In this organizational structure, authority is distributed as per the skill and abilities of employees,
Difference Between Line And Functional Organizational Structure
Major differences between line organization structure and functional organization structure are as follows:
1. Meaning
Line Organization: It is a simple organizational structure where authority flows vertically and each subordinate reports to a single superior
Functional Organization: It is complex type of organizational structure that is made up of different departments and sections functional areas.
2. Nature
Line Organizational Structure: It is simple and very easy to operate.
Functional Organizational Structure: It is complex type of organizational structure.
3. Specialization
Line Organizational Structure: This type of organization is not specialized or follows low level of specialization.
Functional Organizational Structure: It is fully specialized form of organization. It hires specialists and experts for business operation.
Line Organizational Structure: Unity of command is strictly followed in line organization.
4. Unity Of Command
Line Organizational Structure: Unity of command is strictly followed in line organization.
Functional Organizational Structure: Unity of command is not properly followed in functional organization.
5. Discipline
Line Organizational Structure: Discipline is strictly maintained in this type of organization.
Functional Organizational Structure: There is a loose discipline or lack of discipline in functional organizational structure.
6. Authority
6. Authority
Line Organizational Structure: This type of organization follows scalar chain system or vertical authority.
Functional Organizational Structure: It follows functional or diagonal authority system.
7. Economy
Line Organizational Structure: It is very economical form of organizational structure.
Functional Organizational Structure: This type of organization is very costly due to specialists and experts.
8. Work Load For Top Management
Line Organizational Structure: Top level management has more work load due to single authority and responsibility.
Functional Organizational Structure: Top level does not have more work load because responsibility and authority is divided among department heads and specialists.
9. Coordination
Line Organizational Structure: It is suitable for small organizations with limited operations.
9. Coordination
Line Organizational Structure: There is possibility of effective coordination because of only one superior.
Functional Organizational Structure: There may be a problem of coordination due to many supervisors, experts and specialists.
Also Read
10. Decision Making
Line Organizational Structure: Decisions are taken by top level management or line manager.
Functional Organizational Structure: Decisions are made by departmental heads and experts.
11. Suitability
Line Organizational Structure: It is suitable for small organizations with limited operations.
Functional Organizational Structure: It is suitable for medium and large scale organizations with multiple operations.
Line Vs Functional organizational Structure (Comparison Table)
|
Aspect |
Line Organization |
Functional Organization |
|
Nature |
Simple |
Complex |
|
Flexibility |
Less |
More |
|
Decision making |
Quick |
Slow |
|
Suitable for |
Small firms |
Large firms |
|
Specialization |
Less |
More |
|
Economical |
Yes |
No |
|
Authority |
Vertical |
Diagonal |
Distinction Between Line And Functional Organization In Short
* Line organization is simple structure having centralized authority. But functional organization is complex and has decentralized authority.
* Line organization does not promote specialization. On the other hand, functional organization prioritize specialization and division of labor.
* Line organization ensures prompt decision making. But in functional organization it takes more time to make decisions.
* In line organization top level managers suffer from excess work load. In functional organization, there is less work load to managers.
* Line organization is suitable for small firms having limited activities. Functional organization is appropriate for big organizations.
